Pringles joins Corn Flakes' family

Pringles potato chips are on display Monday, Oct. 31, 2005 at a Duane Reade drug store in New York. Procter & Gamble Co., maker of Pampers, Pringles, Tide and other consumer products, said Tuesday Nov. 1, 2005, its fiscal first-quarter net income grew 4 percent, helped by strong revenue growth and despite the effects of hurricanes and rising energy and commodity costs. (AP Photo/Mark Lennihan)

NEW YORK - Diamond Foods Inc. (DMND) and Procter & Gamble Co. (PG) have called off their $1.5 billion deal for Diamond to buy the Pringles brand. Cereal maker Kellogg Co. (K) is swooping in and made a $2.7 billion deal to purchase the brand.

Diamond Foods, which makes Emerald Nuts and Pop Secret popcorn, and Procter & Gamble said Wednesday that they mutually agreed to end their proposed deal.

The news comes a week after Diamond Foods said it was replacing its CEO and CFO after an internal investigation found that the company improperly accounted for payments to walnut growers and it needs to restate two years of financial results.

No breakup or other fees will be paid related to the deal's termination.

Kellogg says it expects to complete the Pringles acquisition during the summer.